Stablecoins are a battleground for the future of money
Opinion: I am not arguing that the US can have only fractional reserve banking or only full reserve banking — but both should be able to co-exist....
- The House Financial Services Committee marked up a stablecoin bill, but it did not have bipartisan support.
- The White House's unwillingness to compromise halted negotiations.
- The objection to the stablecoin bill reflects a battle for the future of money and who can issue money.
- The current fractional-reserve banking system was chosen over the full-reserve banking system proposed by the Chicago Plan.
- Full-reserve banking would require banks to maintain 100% of each customer's demand deposits in cash.
- The public's changing expectations of deposits led to the government saving regional banks.
The sentiment of the article is mostly neutral, with some negative sentiment expressed towards the White House's unwillingness to compromise.